Walmart's sudden move to close 4 Chicago stores sparks outrage, with critics saying it will drive up grocery costs for the neediest familiesWalmart announced this week that it is closing four stores in Chicago in a matter of days.
In a rare press release on April 11 announcing store closures, Walmart said bluntly that these stores "have not been profitable since we opened the first one nearly 17 years ago."
"These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years," the company said. "The remaining four Chicago stores continue to face the same business difficulties, but we think this decision gives us the best chance to help keep them open and serving the community."
Chicago Mayor Lori Lightfoot said in a statement she was "incredibly disappointed" by the decision.
"Unceremoniously abandoning these neighborhoods will create barriers to basic needs for thousands of residents," Lightfoot said. "While near-term arrangements will be made for workers, I fear that many will find that their long-term opportunities have been significantly diminished."
In its announcement, Walmart said all affected store employees would be assisted in transferring to any other Walmart or Sam's Club location, and that those who do not transfer will be paid until August 11. Additional severance benefits will be available to eligible employees after that time.
llinois' layoff law — broader in scope than the federal WARN Act — requires many large employers to provide 60 calendar days' notice before a location closure that is expected to result in 75 or more job losses. Walmart typically does file advance notice where required.
Employers who close without full notice may be responsible for paying workers for up to 60 days, but Walmart appears to go well beyond covering that period; it will provide 17 weeks of wages for those who don't transfer to other stores.
Walmart declined to comment on whether it is providing comparable wage extensions for workers at other closing stores, including elsewhere in Illinois.
Local lawmakers meanwhile have expressed alarm over the swift closures — Walmart is shutting the stores five days after its announcement — and the impact on communities where shoppers rely on Walmart for everyday essentials.
A coalition that includes two state representatives, a state senator, and incoming and current members of the Chicago City Council called the move "unethical" in a statement.
"The communities of the South and West sides of Chicago have already been struggling with increased food costs due to inflation," the coalition said. "Walmart's decision to close four stores in predominantly Black and Brown communities not only worsens food deserts, but will also increase grocery costs for families."
Shoppers at these stores have echoed these concerns. Regina Dickey, a 38-year-old Chicago resident who shopped at the Walmart Supercenter at 8431 S. Stewart Ave., told the Chicago Sun-Times this week that "it's like (Walmart) didn't even give a thought to the people in these communities."
Walmart isn't a stranger to store closures this year. Since February, the retail giant has announced plans to close 20 retail locations across 11 states and Washington D.C.
The move represents a retreat of an aggressive urban expansion Walmart made in recent years. The company does not operate any stores in New York City, and with these closures in Chicago, Walmart is halving its footprint in the third largest city in the United States.
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- Elected officials said that the decision to close the stores "worsens food deserts" in the area.
- Walmart has closed dozens of stores nationwide this year, citing "underperformance" as an issue.
In a rare press release on April 11 announcing store closures, Walmart said bluntly that these stores "have not been profitable since we opened the first one nearly 17 years ago."
"These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years," the company said. "The remaining four Chicago stores continue to face the same business difficulties, but we think this decision gives us the best chance to help keep them open and serving the community."
Chicago Mayor Lori Lightfoot said in a statement she was "incredibly disappointed" by the decision.
"Unceremoniously abandoning these neighborhoods will create barriers to basic needs for thousands of residents," Lightfoot said. "While near-term arrangements will be made for workers, I fear that many will find that their long-term opportunities have been significantly diminished."
In its announcement, Walmart said all affected store employees would be assisted in transferring to any other Walmart or Sam's Club location, and that those who do not transfer will be paid until August 11. Additional severance benefits will be available to eligible employees after that time.
llinois' layoff law — broader in scope than the federal WARN Act — requires many large employers to provide 60 calendar days' notice before a location closure that is expected to result in 75 or more job losses. Walmart typically does file advance notice where required.
Employers who close without full notice may be responsible for paying workers for up to 60 days, but Walmart appears to go well beyond covering that period; it will provide 17 weeks of wages for those who don't transfer to other stores.
Walmart declined to comment on whether it is providing comparable wage extensions for workers at other closing stores, including elsewhere in Illinois.
Local lawmakers meanwhile have expressed alarm over the swift closures — Walmart is shutting the stores five days after its announcement — and the impact on communities where shoppers rely on Walmart for everyday essentials.
A coalition that includes two state representatives, a state senator, and incoming and current members of the Chicago City Council called the move "unethical" in a statement.
"The communities of the South and West sides of Chicago have already been struggling with increased food costs due to inflation," the coalition said. "Walmart's decision to close four stores in predominantly Black and Brown communities not only worsens food deserts, but will also increase grocery costs for families."
Shoppers at these stores have echoed these concerns. Regina Dickey, a 38-year-old Chicago resident who shopped at the Walmart Supercenter at 8431 S. Stewart Ave., told the Chicago Sun-Times this week that "it's like (Walmart) didn't even give a thought to the people in these communities."
Walmart isn't a stranger to store closures this year. Since February, the retail giant has announced plans to close 20 retail locations across 11 states and Washington D.C.
The move represents a retreat of an aggressive urban expansion Walmart made in recent years. The company does not operate any stores in New York City, and with these closures in Chicago, Walmart is halving its footprint in the third largest city in the United States.
The four Walmart stores closing in Chicago
- Chatham Supercenter, the Walmart Health center, and the Walmart Academy, 8431 S. Stewart Ave.
- Kenwood Neighborhood Market, 4720 S. Cottage Grove Ave.
- Lakeview Neighborhood Market, 2844 N. Broadway St.
- Little Village Neighborhood Market, 2551 W. Cermak Road
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